A Bill for an Act to provide for the regulation of poker machines to promote responsible gambling practices and minimise problem gambling, and for related purposes
The Parliament of Australia enacts:
Part 1—Preliminary
1 Short title
This Act may be cited as the Poker Machine Harm Minimisation Act 2008.
2 Commencement
This Act commences at the end of 6 months after the day on which this Act receives the Royal Assent.
3 Objects of Act
The objects of this Act are to provide for:
(a) the manufacture of gaming machines and poker machines; and
(b) the installation of automatic teller machines and cash‑back terminals;
that do not encourage problem and compulsive gambling.
4 Application of Act
Extension to external Territories
(1) This Act extends to Norfolk Island, the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island.
Limited extraterritorial application
(2) This Act applies to acts, omissions, matters and things in the Australian jurisdiction, and subject to subsection (3), does not apply to acts, omissions, matters and things outside the Australian jurisdiction.
Application outside exclusive economic zone limited to Australian vessels
(3) A provision of this Act that has effect outside the outer limits of the exclusive economic zone and the continental shelf applies only in relation to Australian vessels.
Application to vessels in the Australian jurisdiction inside exclusive economic zone
(4) A provision of this Act that has effect within the outer limits of the exclusive economic zone (whether in the zone or in Australia or an external Territory) or on or in the continental shelf applies in relation to all vessels (including vessels that are not Australian vessels).
Note: A reference to Australia or to an external Territory generally includes a reference to the coastal sea of Australia or the Territory (as appropriate). See section 15B of the Acts Interpretation Act 1901.
5 Relationship with State and Territory law
This Act is not intended to exclude or limit the concurrent operation of any law of a State or Territory, unless the contrary intention appears.
6 Definitions
In this Act:
accumulated credits means the amount of credits standing on any one gaming machine or poker machine, whether initially credited to the machine or accumulated through playing the machine.
ATM card means any magnetic stripe card or smart chip card issued by a financial institution to a customer of the financial institution, which enables that customer, as an ATM cardholder, to effect ATM transactions.
ATM cardholder means a customer of a financial institution who is issued an ATM card and a PIN for use with it.
ATM transaction means a cash deposit, a cash withdrawal or a balance enquiry effected by an ATM cardholder at an ATM.
Australian jurisdiction means the land, waters, seabed and airspace in, under or above:
(a) Australia; or
(b) an external Territory; or
(c) the exclusive economic zone; or
(d) the continental shelf.
Note: A reference to Australia or to an external Territory generally includes a reference to the coastal sea of Australia or the Territory (as appropriate). See section 15B of the Acts Interpretation Act 1901.
Australian vessel means:
(a) a vessel that is owned, possessed or controlled by:
(i) the Commonwealth or a Commonwealth agency; or
(ii) a State, a self‑governing Territory or an agency of a State or self‑governing Territory; or
(b) a vessel that is registered in Australia; or
(c) a vessel that is flying the Australian flag.
authorised deposit‑taking institution or ADI means an authorised deposit‑taking institution within the meaning of the Banking Act 1959.
automatic teller machine or ATM means an electronic hardware device, owned or operated by or on behalf of a financial institution, that is capable of automatically dispensing cash in response to a cash withdrawal transaction initiated by an ATM cardholder, to be debited against or charged to an account of the cardholder, through the use of an ATM card issued by a financial institution that is a member of the Consumer Electronic Clearing System (CS3) and the keying in by the cardholder of the cardholder’s PIN, and includes limited service devices (cash dispensers) that only allow for cash withdrawals, although other transactions such as balance enquiries may also be supported by an automatic teller machine.
bank means an authorised deposit‑taking institution that is permitted under section 66 of the Banking Act 1959 to assume or use:
(a) the word bank, banker or banking; or
(b) any other word (whether or not in English) that is of like import to a word referred to in paragraph (a).
bank note acceptor means an electronic hardware device within or attached to a gaming machine or a poker machine that validates banknotes and either accepts and stores valid banknotes in return for the granting of credits playable on the machine, or rejects and returns to the player invalid bank notes, or those of denominations other than those for which it has been enabled to accept.
cardholder means an ATM cardholder, an EFTPOS cardholder or a credit cardholder.
cash‑back terminal means a customer‑operated payment machine that enables gaming machine and poker machine players to redeem their gaming machine tickets for cash.
cash facility means:
(a) an ATM; or
(b) an EFTPOS terminal; or
(c) any other prescribed facility that enables a person to gain access to the funds in his or her account or to a cash advance through a credit card.
Consumer Electronic Clearing System (CS3) means the standards, policies and procedures coordinated by the Australian Payments Clearing Association for the purpose of settlement of obligations incurred between financial institutions that arise from the operation of the national automatic teller machine network.
corporation means a body corporate that:
(a) is a foreign corporation; or
(b) is a trading corporation formed within the limits of Australia or is a financial corporation so formed; or
(c) is incorporated in a Territory; or
(d) is the holding company of a body corporate of a kind referred to in paragraph (a), (b) or (c).
credit card means any magnetic stripe card or smart chip card issued by a financial institution or a credit card or charge card company to a customer of the financial institution or credit card or charge card company, which enables that customer, as a credit cardholder, to effect credit card and charge card transactions, including obtaining cash advances.
credit cardholder means a customer of a financial institution or a credit card or charge card company who is issued with a credit card or a charge card and a PIN for use with that card.
credit meter means the indicator on a gaming machine or a poker machine that displays the number of credits registered on the machine and available to a player for betting and the monetary value of those credits.
credit union means an authorised deposit‑taking institution that is permitted under section 66 of the Banking Act 1959 to assume or use the expression credit union or credit society.
debit card means an ATM card or an EFTPOS card.
EFTPOS means an electronic funds transfer at the point of sale.
EFTPOS card means any magnetic stripe card or smart chip card issued by a financial institution to a customer of the financial institution, which enables that customer, as an EFTPOS cardholder, to effect EFTPOS transactions.
EFTPOS cardholder means a customer of a financial institution who is issued with an EFTPOS card and a PIN for use with that card.
EFTPOS terminal means an electronic hardware device used to put into effect an EFTPOS transaction.
EFTPOS transaction means an electronic funds transfer initiated by an EFTPOS cardholder’s use at point of sale of an EFTPOS card, and in the normal course, the keying in by the cardholder of the cardholder’s PIN, at an EFTPOS terminal, and includes any cash withdrawal, refund and reversal of any such transfer.
executive officer of a body corporate means a person, by whatever name called and whether or not a director of the body corporate, who is concerned in, or takes part in, the management of the body corporate.
financial institution means a body corporate that is an authorised deposit‑taking institution for the purposes of the Banking Act 1959, including but not limited to banks and credit unions.
game, in relation to a gaming machine or a poker machine, means a play, or a series of plays, initiated by the application of a monetary credit registered on the machine.
gaming machine has the same meaning as poker machine.
gaming machine credit has the same meaning as poker machine credit.
gaming machine ticket means a ticket that:
(a) is issued from a gaming machine or a poker machine (or peripheral equipment that is installed for the purpose of issuing tickets) to a player of that machine; and
(b) shows the value of the credits accumulated and not otherwise redeemed in the course of play on that machine.
gaming machine ticket reader means an electronic hardware device within or attached to a gaming machine or a poker machine that validates a gaming machine ticket and either accepts and stores valid gaming machine tickets in return for the granting of credits playable on the machine, or rejects and returns to the player invalid gaming machine tickets, or those for amounts greater than the maximum credits for which it has been enabled to accept.
gaming token means a token, credit or other thing that enables a bet to be made on a gaming machine or a poker machine, but does not include a gaming machine or poker machine credit.
jackpot, in relation to a gaming machine or a poker machine, means the combination of letter, numbers, symbols or representations as part of a game on that machine that pays the maximum winnings payable on that machine for any one combination.
licence means a gaming machine licence or a poker machine licence issued under the relevant laws of the States and Territories.
licensed venue means premises for which a licence is in force.
linked‑jackpot arrangement means an arrangement under which two or more gaming machines or poker machines are linked to a device that:
(a) from time to time, records the amount payable as winnings under the arrangement; and
(b) for the purpose of recording the amount mentioned in paragraph (a), receives messages from each machine to which it is linked; and
(c) cannot affect the percentage payout of, or transmit a message to, a machine to which it is linked.
payline means the line of symbols on the reels or screen of a gaming machine or a poker machine on which a winning pattern occurs.
peripheral equipment, for a gaming machine or a poker machine, means equipment, or a device, that is incidental to the basic operation of the gaming machine or poker machine, including but not limited to bank note acceptors and smart card readers.
personal identification number or PIN means the number which is either issued by a financial institution or selected by an ATM or EFTPOS cardholder for the purpose of authenticating the use by the cardholder of the ATM or EFTPOS card, as the case may be.
play has the meaning given by section 7.
poker machine means a machine:
(a) designed for playing a game of chance, or of mixed chance and skill; and
(b) designed to be played completely or partly by:
(i) the insertion of one or more coins, notes or tokens; or
(ii) the application of a monetary credit registered on the machine or elsewhere; and
(c) that offers, or that appears to offer, people a chance to win monetary or other valuable consideration by playing the machine.
poker machine credit means a credit of a gaming token registered by a gaming machine or a poker machine.
smart card means a card which has embedded in it an electronic integrated circuit (microprocessor) of any type in the form of a chip, the information on which must be accessed by the card being inserted into a smart card reader, and which has registered on it:
(a) a maximum fortnightly monetary credit of $1,000, pre‑registered at least one week in advance; and
(b) a maximum fortnightly playing time of 10 hours.
smart card gaming machine has the same meaning as smart card poker machine.
smart card poker machine means a machine:
(a) designed for playing a game of chance, or of mixed chance and skill; and
(b) designed to be played completely by:
(i) the insertion of a smart card; and
(ii) the application of the maximum fortnightly monetary credit of $1,000, pre‑registered on the smart card at least one week in advance; and
(iii) the application of the maximum fortnightly playing time of 10 hours registered on the smart card; and
(c) that offers, or that appears to offer, people a chance to win monetary or other valuable consideration by playing the machine.
smart card reader means an electronic hardware device within or attached to a gaming machine or a poker machine that validates smart cards and either accepts those smart cards which it has been enabled to accept, allowing a player to play the machine, or rejects and returns to the player invalid smart cards.
spin means a sequence of actions and states in a gaming machine or a poker machine initiated by a player through wagering a single credit and terminated when the credit wagered has been lost or all winnings have been transferred to the total wins meter of the gaming machine or poker machine and the player’s credit meter.
spin rate, in relation to a gaming machine or a poker machine, means the interval between spins on the gaming machine or poker machine.
total wins meter means a device for recording amounts that, if won by a player, would be credited to the credit meter of the player’s gaming machine or poker machine.
7 Meaning of play
For the purposes of this Act, a person is taken to play a gaming machine or a poker machine if the person, directly or indirectly:
(a) inserts a coin, note, gaming token or smart card into the machine; or
(b) causes gaming machine credits to be registered by the machine; or
(c) makes a bet on the machine; or
(d) causes the activation of any process relating to the game of the machine; or
(e) makes or participates in the making of the decisions involved in playing the machine.
Part 2—Technical requirements on corporations that manufacture or supply gaming machines and poker machines
8 Application
This Part applies to:
(a) any corporation that manufactures gaming machines or poker machines for use in the Australian jurisdiction, an external Territory, on an Australian vessel or on a vessel that is not an Australian vessel but which navigates in the Australian jurisdiction; and
(b) any corporation that sells, offers or exposes for sale or supplies gaming machines or poker machines for use in the Australian jurisdiction, an external Territory, on an Australian vessel or on a vessel that is not an Australian vessel but which navigates in the Australian jurisdiction, whether those machines are manufactured within the Australian jurisdiction or not.
9 Maximum denomination of notes accepted by bank note acceptors
(1) A corporation must not manufacture a gaming machine or a poker machine that accepts banknotes with a denomination greater than $20.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that accepts banknotes with a denomination greater than $20.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
10 Limit on credits entered through banknote acceptors
(1) A corporation must not manufacture a gaming machine or a poker machine that allows a player, by means of entering banknotes into the machine’s bank note acceptor, to have more than $100 of accumulated credits.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that allows a player, by means of entering banknotes into the machine’s bank note acceptor, to have more than $100 of accumulated credits.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(3) This section does not apply in relation to credits accumulated on a gaming machine or a poker machine through the player playing that machine.
11 Limits on credits entered through gaming machine ticket readers
(1) A corporation must not manufacture a gaming machine or a poker machine that allows a player, by means of entering a gaming machine ticket or more than one gaming machine ticket into the machine’s gaming machine ticket reader, to have more than $100 of accumulated credits.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that allows a player, by means of entering a gaming machine ticket or more than one gaming machine ticket into the machine’s gaming machine ticket reader, to have more than $100 of accumulated credits.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
12 Prohibition on multiple line betting
(1) A corporation must not manufacture a gaming machine or a poker machine that has more than one payline.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that has more than one payline.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
13 Maximum bet per spin
(1) Subject to subsection 14(1), a corporation must not manufacture a gaming machine or a poker machine that enables a maximum bet greater than $1 per spin.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) Subject to subsection 14(2), a corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that enables a maximum bet greater than $1 per spin.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
14 Maximum bet per spin—smart card gaming machines and smart card poker machines
(1) A corporation must not manufacture a smart card gaming machine or a smart card poker machine that enables a maximum bet greater than $5 per spin.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a smart card gaming machine or a smart card poker machine that enables a maximum bet greater than $5 per spin.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
15 Limit on jackpots and linked‑jackpot arrangements
(1) Subject to subsection 16(1), a corporation must not manufacture a gaming machine or a poker machine that has a jackpot or a linked‑jackpot arrangement greater than $1,000.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) Subject to subsection 16(2), a corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that has a jackpot or a linked‑jackpot arrangement greater than $1,000.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
16 Limit on jackpots and linked‑jackpot arrangements—smart card gaming machines and poker machines
(1) A corporation must not manufacture a smart card gaming machine or a smart card poker machine that has a jackpot or a linked‑jackpot arrangement greater than $2,000.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a smart card gaming machine or a smart card poker machine that has a jackpot or a linked‑jackpot arrangement greater than $2,000.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
17 Prohibition on free spins and free games
(1) A corporation must not manufacture a gaming machine or a poker machine that provides for free spins or free games to be triggered during a game.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that provides for free spins or free games to be triggered during a game.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
18 Spin rate
(1) A corporation must not manufacture a gaming machine or a poker machine that has a spin rate of less than 5 seconds.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a gaming machine or a poker machine that has a spin rate of less than 5 seconds.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
Part 3—Technical requirements relating to automatic teller machines owned or operated by or on behalf of banks, credit unions and other financial institutions
19 Application
This Part applies to any bank, credit union or other financial institution:
(a) that owns or operates a cash facility that is installed at a licensed venue; or
(b) on behalf of whom a cash facility is operated at a licensed venue.
20 Limiting withdrawals and advances from cash facilities
(1) A bank, credit union or other financial institution must not operate a cash facility, or allow a cash facility to be operated on its behalf, at a licensed venue that allows a cardholder to obtain by means of that facility, in any one transaction on any one debit card or credit card, an amount of cash greater than $100.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A bank, credit union or other financial institution must not operate a cash facility, or allow a cash facility to be operated on its behalf, at a licensed venue that allows a cardholder to obtain by means of that facility, in total transactions on any one day on any one debit card or credit card, an amount of cash greater than $100.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
Part 4—Technical requirements on corporations that manufacture or supply cash‑back terminals
21 Application
This Part applies to:
(a) any corporation that manufactures cash‑back terminals for use in the Australian jurisdiction, an external Territory, on an Australian vessel or on a vessel that is not an Australian vessel but which navigates in the Australian jurisdiction; and
(b) any corporation that sells, offers or exposes for sale or supplies cash‑back terminals for use in the Australian jurisdiction, an external Territory, on an Australian vessel or on a vessel that is not an Australian vessel but which navigates in the Australian jurisdiction, whether those terminals are manufactured within the Australian jurisdiction or not.
22 Maximum redemption amount for cash‑back terminals
(1) A corporation must not manufacture a cash‑back terminal that allows a player, by means of entering a gaming machine ticket into the cash‑back terminal, to redeem more than $100 in a single transaction.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
(2) A corporation must not sell, offer or expose for sale or supply a cash‑back terminal that allows a player, by means of entering a gaming machine ticket into the cash‑back terminal, to redeem more than $100 in a single transaction.
Maximum civil penalty: 2,000 penalty units.
Note: penalty unit has the meaning given by section 4AA of the Crimes Act 1914.
Part 5—Civil penalties
Division A—Obtaining an order for a civil penalty
23 Federal Court may order person to pay pecuniary penalty for contravening civil penalty provision
Application for order
(1) Within 6 years of a person (the wrongdoer) contravening a civil penalty provision, the Minister may apply on behalf of the Commonwealth to the Federal Court for an order that the wrongdoer pay the Commonwealth a pecuniary penalty.
Court may order wrongdoer to pay pecuniary penalty
(2) If the Court is satisfied that the wrongdoer has contravened a civil penalty provision, the Court may order the wrongdoer to pay to the Commonwealth for each contravention the pecuniary penalty that the Court determines is appropriate (but not more than the relevant amount specified for the provision).
Determining amount of pecuniary penalty
(3) In determining the pecuniary penalty, the Court must have regard to all relevant matters, including:
(a) the nature and extent of the contravention; and
(b) the circumstances in which the contravention took place; and
(c) whether the person has previously been found by the Court in proceedings under this Act to have engaged in any similar conduct.
Conduct contravening more than one civil penalty provision
(4) If conduct constitutes a contravention of two or more civil penalty provisions, proceedings may be instituted under this Act against a person in relation to the contravention of any one or more of those provisions. However, the person is not liable to more than one pecuniary penalty under this section in respect of the same conduct.
24 What is a civil penalty provision?
A subsection of this Act (or a section of this Act that is not divided into subsections) is a civil penalty provision if the words “civil penalty” and an amount in penalty units is set out at the foot of the subsection (or section).
25 Contravening a civil penalty provision is not an offence
A contravention of a civil penalty provision is not an offence.
26 Persons involved in contravening civil penalty provision
(1) A person must not:
(a) aid, abet, counsel or procure a contravention of a civil penalty provision; or
(b) induce (by threats, promises or otherwise) a contravention of a civil penalty provision; or
(c) be in any way directly or indirectly knowingly concerned in, or party to, a contravention of a civil penalty provision; or
(d) conspire to contravene a civil penalty provision.
(2) This Division applies to a person who contravenes subsection (1) in relation to a civil penalty provision as if the person had contravened the provision.
27 Recovery of a pecuniary penalty
If the Federal Court orders a person to pay a pecuniary penalty:
(a) the penalty is payable to the Commonwealth; and
(b) the Commonwealth may enforce the order as if it were a judgment of the Court.
Division B—Enforceable undertakings relating to contraventions of civil penalty provisions
28 Acceptance of undertakings relating to contraventions of civil penalty provisions
(1) This section applies if the Minister considers that an action taken by a body corporate after the commencement of this section contravened one or more civil penalty provisions of Parts 2, 3 and 4.
(2) The Minister may accept a written undertaking given by an executive officer on behalf of the body corporate in relation to the action, in which the body corporate:
(a) undertakes to pay a specified amount, within a specified period to the Commonwealth; or
(b) any other undertaking in connection with that contravention.
(3) The executive officer on behalf of the body corporate may withdraw or vary the undertaking at any time, but only with the consent of the Minister.
29 Enforcement of undertakings
(1) If the Minister considers that an executive officer who gave an undertaking under section 28 or the body corporate on behalf of which an undertaking was given under section 28 has breached any of its terms, the Minister may apply to the Federal Court for an order under subsection (2).
(2) If the Federal Court is satisfied that the executive officer or the body corporate has breached a term of the undertaking, the Court may make one or more of the following orders:
(a) an order directing the executive officer or the body corporate to comply with that term of the undertaking;
(b) any other order that the Court considers appropriate.
Part 6—Miscellaneous
30 Regulations
The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.